- Exports soar to record $8.3bn amid Ethiopia’s economic rebound
- Energy megaprojects and fiscal reforms boost growth, analysts say
ADDIS ABABA, ETHIOPIA – Ethiopia’s exports surged to a record $8.3 billion in the 2024/25 fiscal year, a 116% jump from the previous year, signalling a powerful turnaround in the Horn of Africa nation’s economy.
President Taye Atske-Selassie announced the figures on Monday during the joint opening session of the House of Peoples’ Representatives and the House of Federation, describing the achievement as “a memorable chapter in Ethiopia’s economic history.”
“This milestone reflects the government’s efforts to strengthen trade and diversify economic growth,” the president said.
Broad-based growth and improving stability
The president reported that the broader economy also strengthened across multiple sectors. GDP expanded from 8.1% in 2023/24 to 8.8% in 2024/25, while agricultural output rose from 1.2 billion to 1.57 billion quintals. Industrial growth increased from 59% to 65%, supported by a sharp rise in gold production from 3.9 tons to 38.87 tons and cement output from 7.5 million to 9.1 million tons.
Inflation fell dramatically from 19.9% to 13.9%, offering relief to consumers and businesses alike and easing pressure on the central bank to contain prices.
President Taye credited the progress to a broad economic overhaul. “The government has turned the page to a new economic future: from debt to sovereignty and self-reliance,” he said, highlighting reforms that have boosted foreign exchange reserves and improved Ethiopia’s investment climate.
Two landmark energy projects also marked the year. The Grand Ethiopian Renaissance Dam (GERD) was inaugurated on 9 September 2025, boasting an installed capacity of 5,150 megawatts and an annual output target of 15,700 gigawatt-hours. Just weeks later, Ethiopia launched the Ogaden Liquefied Natural Gas (LNG) Project on 2 October 2025, designed to produce 111 million litres of LNG annually alongside 1,000 megawatts of power.
“These projects will boost Ethiopia’s foreign exchange earnings, enhance industrial competitiveness, and better integrate our economy into global markets,” Taye said.
Analysts urge caution despite optimism
Analysts welcomed the strong performance but cautioned against over-optimism.
“Ethiopia’s numbers are impressive, but the challenge will be in translating one-off gains into long-term stability,” said Amare Alemu, an Addis Ababa-based economist. “Global commodity volatility and domestic financing gaps remain risks.”
Amare added that sustaining the export momentum will depend on “continued fiscal and monetary discipline, investments in infrastructure, and structural reforms to attract foreign capital.”
Despite these risks, optimism prevails. “With exports at an all-time high and growth showing resilience, Ethiopia’s immediate outlook appears positive,” Amare said. “But long-term stability will hinge on managing debt obligations and navigating global market uncertainties.”
